COMMENT
Why It's Vital To Write A Will

A recent report from Barclays has highlighted the fact that more than half of adults in the UK have not written a will. What's more, nearly half (48%) of those with children and 19% of people aged over 65 have not written their will, either. Blimey!

I know what many of you are thinking. Writing a will is one of those things that you keep meaning to do but never seem to find the time. Plus it'll cost a lot of money and you don't have much to spare. Indeed, Barclays found that 56% of us gave "I just haven't got round to it" as their reason, with 15% believing they were too young and 9% stating they have simply not had enough time to think about it.

Although writing a will may seem like something that only older people should worry about, it's becoming an increasingly important issue for younger people too, due to the way our estates are taxed when we die. Inheritance tax (IHT) (boo, hiss!) is the tax that is paid on your estate once you've popped your clogs and is charged at a whopping flat rate of 40%. Of course, there is a threshold that your estate must be worth before being taxed, which is currently set at £275,000. All well and good, you're probably thinking, my "estate" can't be worth anything near that - how much can a car, some CDs and a few quid in savings add up to?

However, remember that your estate also includes your home. House prices have risen dramatically over the last few years (whilst the IHT threshold has risen by 4% per year, on average) and many people living in the South East, for example, could find their property alone absorbs much of this allowance. It therefore doesn't take long to realise how much of your hard earned cash could completely bypass your family and go to line the taxman's pocket, instead. Try using this IHT calculator to see how much you could end up paying.

So what can you do? Well, this is where wills come into play. By writing a tax-efficient will, not only can you ensure your tax liabilities are minimised, you can also ensure that the right people will receive what you had intended for them. Unmarried partners with children should definitely consider writing their will as legal rights for those co-habiting are not as defined as they are for married couples. You can also appoint guardians for your children in your will.

So, stop putting it off until tomorrow and make an appointment to write your will, today. Take look for lawyers in the Yellow Pages and preferably pick one that is a member of S.T.E.P. (The Society of Trust and Estate Practitioners). A basic single will should cost something in the region of £40-£60 +VAT, with "mirror wills" (for a husband and wife) costing around £95 +VAT. More complicated, tax-efficient wills can cost around £127 +VAT. And you can find out a whole lot more about wills by taking a look at our six-part mini-series entitled "Wills and Probate".